Gold Prices Expected to Regain Footing
Monday, 2 March 2020 12:57 WIB | GOLD CORNER |Gold CornerGold Outlook

Participants in the weekly Kitco gold survey haven't given up on the precious metal despite Friday's sharp sell-off.

Main Street remains solidly bullish. And while Wall Street was somewhat mixed, the largest bloc of voters called for a rebound in prices.

Fifteen market professionals took part in the Wall Street survey. Seven, or 47%, called for gold to rise. Five voters, or 33%, called for further weakness. Three respondents, or 20%, were either neutral or predicted sideways prices.

Meanwhile, 1,619 votes were cast in an online Main Street poll, which was the most in 2 ½ years. A total of 1,079 voters, or 67%, looked for gold to rise in the this week. Another 303, or 19%, said lower, while 237, or 15%, were neutral.

Still, optimism remains.

"I remain bullish for this week in gold," said Kevin Grady, president of Phoenix Futures and Options. "The news about the coronavirus continues to worsen, so I think gold will remain volatile yet firm. The interesting thing to note is that the flight to quality remains steady in bonds but intermittent in gold."

Richard Baker, editor of the Eureka Miner™s Report, explained that profit-taking, forced long liquidation and low consumer demand in China likely all played a part in Comex gold retreating over the last week. But he looks for a comeback.

"Given the mounting uncertainty surrounding the impact this illness [coronavirus] will have on the U.S. economy and the world, I believe it likely that gold will recover lost ground this week to the $1,650 level...and to $1,800 per ounce in the weeks to come," Baker said.

He later added, "The lustrous metal and U.S. Treasurys will remain global safe havens of choice in a world of increasingly negative interest rates (the German Bund hit a new negative record low last week). In the U.S., the 10-year real rate [which adjusts for inflation] is solidly negative, sustaining a very bullish environment for a non-interest earning asset like gold."

Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, also said higher since "gold should act well during market instability."

Others fear further weakness.

"Momentum is to the downside," said Charlie Nedoss, senior market strategist with LaSalle Futures Group. He pointed out that the metal has now fallen below $1,621 area, which is the 50% retracement of the prior rise from the Feb. 5 low of $1,551.10 an ounce to last Monday's high of $1,691.70.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the annual In Gold We Trust report, also said lower as margin calls kick in and sentiment and the heavily bullish position in the Commitments of Traders report looks worrisome. Further, if fiscal and monetary stimulus should be announced over the weekend, a relief rally in equities could hurt gold prices, he added.

Daniel Pavilonis, senior commodities broker with RJO Futures, looks for gold to be sideways.

"With the [stock] markets selling off the way they are, gold should be up a lot higher," he said.

However, he noted, there are some rumblings in the market that perhaps the Federal Reserve will undertake some action to underpin the stock market. If so, that could take away some of the safe-haven demand for gold.

"I would be more inclined to take a profit here in gold if I was long," he said. "That's why I'm saying this week maybe sideways."

Colin Cieszynski, chief market strategist at SIA Wealth Management, described himself as neutral.

"On the bearish side, despite high stock-market volatility through the week, gold peaked on last Monday and has been sliding. Also, the global active coronavirus case count has been declining through the week [so] it's possible a lot of the hype could drop off at some point.

"On the bullish side, the increasing measures being undertaken by governments and businesses around the world to combat the outbreak could still have a larger and longer-lasting impact on the global economy, which may force the central banks to make a coordinated effort to get things going again at some point."

Source: Kitco News

RELATED NEWS

Menjelang Akhir Juli 2020, Persiapkan Opsi Buy untuk Emas Berjangka
Thursday, 2 July 2020 15:00 WIB

Uji coba awal vaksin COVID-19 yang dikembangkan oleh Pfizer Inc dan BioNtech SE menunjukkan hasil positif yaitu aman dan memampukan pasien memproduksi antibodi terhadap virus. Kabar baik ini mempengaruhi pergerakan harga emas seketika turun tipis 0,60% pada penutupan perdagangan Rabu, 1 Juli 2020 di...

Juli, Emas Masih Menjanjikan
Wednesday, 1 July 2020 16:41 WIB

Indeks emas berjangka ditutup di atas $1.800 per ons pada Selasa, 30 Juni 2020 yang berarti pula penutupan pada semester pertama tahun ini. Sepanjang enam bulan terakhir emas menjadi kontrak berjangka paling aktif dan telah naik lebih dari 16% dari posisi pembukaan di awal tahun 2020. Wabah COVID-1...

Wall St., Main St. Look for Gold Prices to Keep Shining
Monday, 29 June 2020 13:42 WIB

Gold prices should maintain maintain their recent upward momentum as the COVID-19 pandemic keeps spreading and prompting worries about the economy, according to respondents in the weekly Kitco News gold survey. "Rising uncertainty about the virus will cement easy-money policies," said Adam Button, ...

Wall St., Main St. Upbeat About Short-Term Outlook for Gold Prices
Monday, 22 June 2020 13:29 WIB

Respondents in the weekly Kitco News gold survey are bullish on gold for this week, with some Wall Street professionals suggesting monetary policy and fiscal stimulus will lead to another test of the top end of the recent trading range. "Gold has been in a battle but should end higher this week," s...

Wall St., Main St. Expect Gold Prices To Keep On Shining
Monday, 15 June 2020 10:48 WIB

Wall Street and Main Street look for gold prices to continue their recovery this week. The precious metal sold off sharply at the end of last week when a stronger-than-forecast report on U.S. nonfarm payrolls led to improved optimism about the economy. However, the metal rose sharply this week as b...

ANOTHER NEWS
Hong Kong stocks post strong gains
Thursday, 2 July 2020 15:25 WIB Hong Kong stocks soared Thursday, in line with a global advance on hopes for a virus vaccine and despite concerns over a draconian security law imposed on the city by Beijing that raised questions about its future as a business hub. The Hang Seng...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.